Surface 2 Preview

Microsoft will launch—but not release—its second generation Surface tablets at an event in New York on Monday. Here's what you can expect.

Of course, if you've been following along, you sort of know what to expect: Surface 2 information has been leaking for the past month or so, though as with previous reports, I'll expand on the information you've seen elsewhere.

Three devices. Microsoft will launch three new Surface devices before the end of the year. Two of them, Surface 2 and Surface Pro 2, will be announced Monday. I'm told that the third device, which I think of as Surface "mini," will be announced at a later date. I have no idea why they'd bother splitting them up like this.

Surface 2. As noted in Surface 2 Details Emerge, the Surface 2 is the next version of Surface RT. It features a TEGRA 4 (ARM) processor, a 10.6-inch ClearType Full HD (1920 x 1080, or 1080p), front- and rear-facing cameras, Bluetooth 4.0, Wi-Fi 802.11, full-sized USB 3.0 port, micro-SD expansion up to 64 GB, a two position integrated kickstand and an HD video-out port in a package that is identical to the Surface RT, though it will come in white. It runs Windows RT 8.1 and comes with Office Home & Student 2013 RT (with Outlook RT). I've not been told about pricing, but a source of Mary Jo Foley's claims it will be $499, the same as the original Surface RT at launch.

Surface Pro 2. As discussed previously in Surface Pro 2 Details Emerge, the Surface Pro 2 is the successor to the Surface Pro and it will come in the exact same body. It features a 4th generation Intel Core i5 processor, a choice of RAM and storage options, an integrated two position kickstand, a ClearType Full HD display, front- and rear-facing 720p LifeCam cameras, Bluetooth 4.0, Wi-Fi 802.11, a full-size USB 3.0 port, microSD expansion up to 64 GB, mini DisplayPort for video out, and a digital Pro Pen. It runs Windows 8.1 Pro "with enhanced features," whatever that means, but does not come with any version of Office. Mary Jo reports that this device could start at $899, same as before.

Surface "mini." This will not be announced on Monday, but as I previously reported it will utilize an 8-inch display and a Qualcomm (ARM) processor. That means it will run Windows RT 8.1.

Accessories. As reported before in Surface Power Cover to Ship This Year and Microsoft Prepping a Surface Docking Station, the Surface lineup will be bolstered by many more accessories this year, all of which will also work with the first-generation Surface Pro and some of which will work with the original Surface RT. These include the aforementioned Docking Station, a larger lineup of covers (Touch Cover, Touch Cover 2 and Type Cover 2 with illuminated keys, and Power Cover) with more colors on all cover types plus a barrel-shaped typing cover wireless adapter, various display adapters (same as before), an Ethernet adapter (as before, Surface Pro and Pro 2 only), power supplies (including a new car charger with USB port), updated Wedge Touch and Arc Touch mice, and Pro Pen (same as before).

Schedule. While Microsoft is announcing the initial two second generation Surface devices tomorrow, I don't expect them to launch until October 18, 2013, when Windows 8.1 hits the streets. Perhaps Surface "mini" will ship later, in November. But I've not heard.

Based on comments that Microsoft executives made last week at the Financial Analyst's Meeting, the company is very serious about pushing forward with Surface, despite the humiliation and potential brand implosion of this year's $900 million write-down due to unsold hardware. And it promises to speak more about the future of Surface at Monday's event. But here's the most substantive Surface conversation that occurred last week.

"You know when we came up with Surface, the idea to do Surface, and that tablet it was really about bringing the best of a tablet and productivity all in one thing," Julie Larson-Green noted. "And we still really believe in that vision and going forward. It was a V.1 and we're committed to going forward with that ... We have learned a lot, where [Windows] 8.1 adds a lot of capabilities and gets us closer to that vision."

"I think what we learned a lot is that you need to have balance to be successful in the market," she continued. "So you need to have the combination of great hardware, great software, apps and services in order to win. And we learned this [first] with Xbox. When the first Xbox came out it was hardly any games, it took a while for us to get going with it. And we're very optimistic about what we're doing in terms of the changes that are being made in the software, the applications that are coming online, the services, and improving the hardware, both in terms of speed, performance, and the integration with the software."

"Now something mature like, say, the PC market itself, Surface Pro we saw the up-tick on that very quickly, because it was a mature market with a mature software, and a mature set of services," she said, suggesting that Surface Pro has done much better than Surface RT. "So I think we're learning about the nascent part of trying to create this kind of Surface holistic device and we're going to continue forward. We have a lot of things to announce on Monday that I'm excited to talk about."

So I'm very interested in hearing about the future of Surface. But now you know what I know, for the most part, though of course on Monday I'll be able to share more imagery as well. Stay tuned.

Discuss this Article 48

The Type Cover 2 with illuminated keys is desperately needed. It's one of the reasons I didn't get a Surface Pro in the first place. I hope they at least give the option with the Power Cover, or I would consider that another missed opportunity. I can't imagine computing on a desktop or laptop without an illuminated keyboard. It's so much better on my eyes. With that said, if the Power Cover doesn't offer at least a 2 hour power boost, then illuminated or not, it may not be worth it over the illuminated Type Cover 2.

What I am most interested in is whether the "mini DisplayPort" will be version 1.2 which allows daisy chaining of monitors. From everything I can tell, the current Pro version must be 1.1. I am also interested in the docking station and how it will handle multiple monitors. The only way I can see the Surface being a desktop alternative is a better way to snap in and out of a docking station which will handle at least 2 external monitors, preferably using displayport instead of the usual display link options. My main issue with the current 3rd party options is the need to plug in the usb port and the charger, which I seem to be very clumsy about connecting.

I absolutely agree. I spent quite a bit of time trying to figure out the multiple monitor support options for the Surface Pro v1 but came to the same conclusion. I tried (and didn't really like) the USB3 dock options for a number of reasons.

So for me, tomorrow, confirmation (hopefully) that the dock will allow DP1.2 daisy-chaining to multiple monitors is now the only thing stand between me and getting a Pro v2.

The Surface Pro is an ultrabook & runs Windows 8, so I understand charging a premium for that.

For the Surface (formerly known as RT), the price needs to be lower. Didn't they learn ANYTHING from the past year? They're simply NOT going to sell many of these devices when their OEMs are selling Bay Trail tablets (which are more capable) for $150-$200 less.

I understand that the Surface hardware is premium. I own two and think they make the iPad look cheap; however, until Windows RT has (near) app parity, they need to sell it at breakeven prices (or at a loss)... like they did with the original Xbox. THEN... when a customer walks into a Best Buy and sees a beautiful Surface next to cheap Android tablets for the same price, they're more likely to choose the Surface. Likewise, if a person wants an iPad but doesn't really want to spend $500, they might choose the comparable Surface instead if it costs $300.

Sometimes, I just don't understand what Microsoft is thinking. They're being stupidly stubborn on Windows RT & Surface RT. Also, since the Nokia 2520 has LTE for the same price as the WiFi-only Surface, why shouldn't a customer choose the sexy Nokia tablet?

Ditto. Microsoft thinks it has all kinds of time to make all of their vision come together. I don't think they do, as the market continues to move ahead. Microsoft's ecosystem is not competitive with Apple or Google. Ecosystem adds value to a purchase. To compensate for its inferior ecosystem, I believe Microsoft has to sell better quality hardware at a lower price (yes even the Surface Pro) to compensate the overall value proposition.

I completely get what you're saying but I suspect though that putting the price back up if and when they become successful is going to be a problem.

It seems to me that Surface is to be THE premium brand for Windows devices both now and in the future and consequently they won't change their pricing structure just for short-term gains. I think they've decided that they've got deep enough pockets to tough this out and (as is the Microsoft way) keep going and going and going until they finally break through. Just like they did with Xbox.

I guess there is always the possibility that through the Nokia deal the Surface moves away from ARM to focus on the ultrabook and market and lets the Nokia family of devices take up the Windows RT mantle for phones & tablets.

If they announce $499 for Surface 2 presumably without keyboard, then it's DOA. They cannot expect the mass to choose the Surface 2 over the iPad as Apple has already prevailed in terms of mindshare at the $499 price point. Microsoft needs the Surface line to take off this time around and they have to be the aggressor. Sure, it won't make as much profit per unit but they need to get the products out there for people to notice.

Totally agree! WTF are they thinking launching at that price point AGAIN! Especially when commercials show off the $349 price? That is unbelievable if true and a real demonstration of how out of touch they are with their place in the market.

The new devices need to launch at the same price-point the current devices are at (now discounted from original release)... and then they need to discount the existing devices FURTHER in order to sell them off.

I can't imagine they're not doing that. How clueless and out of touch would you have to be to NOT do such an obvious thing?

But then I look at how they priced Windows 8.1, and don't provide any upgrade path from 7.0, and I despair...

Nope, it's not cost related: A BayTrail Atom CPU costs around $32 to the manufacturer, where an ARM CPU costs anywhere from $5 to $12. How is it then that Asus can release a $350 BayTrail machine including a keyboard but Microsoft releases the Surface at a higher price while using/paying for a much cheaper CPU and no keyboard? It can't be the build quality + 1080p screen because those two, when you're thinking in mass production, certainly don't jack up the price $150. They're obviously trying to keep gross margins high, but they're in a market where they are progressively becoming weaker: they should sell at or nearly at cost, create market share, that way they'll attract devs, more apps will be sold and they can make money on the apps. That, plus the fact that if you become a huge platform, once you do even greater numbers of mass production, manufacturing gets even cheaper yet you don't have to lower the market price, thus making better margins. They're asking for your confidence/money first, promising you'll get stuff later. I've done that a bunch of times with them and I'm not about to repeat it: show me what you have NOW and I'll pay accordingly... or buy better value from another OEM (like Asus).

I can understand not doing the same pricing as Surface 1, but I do hope they sweeten the pot with Surface 2 if they can't go lower than $499. If it comes with a Touch/Type cover, then that price can work. The only issue there is people already owning a Surface and Cover may not want a second one.

It's ok for Surface 2 to be more expensive, but maybe $100 more at most, and that's only until they can shed Surface 1 inventory.

Paul, do you recommend getting the extended warranty on Surface? I think its called Total Protection or something like that. It adds more to the price, of course, because it includes a Type Cover, a case, and other stuff that I don't want. I'd prefer a Touch Cover instead but you can't customize the Total Protection purchase.

I hope Surface Pro 2 isn't as high priced as MJF said WW it would/might be. It's simply to high and that's without the cover!

Microsoft would do well to look closely at the other Windows tablets when deciding on Surface pricing. Both Dell and Asus have very nice looking 10" tablets running full Windows for $400 or less. An RT tablet for $500 with no peripherals included will be DOA. The Surface Mini will need to be $299 or less to have any chance at survival.

What will be interesting is when Sony announces the price on the VAIO Tap 11. The only information I've seen implied that it would be priced at $1,300 with an included keyboard and a 512GB SSD. If that is true then it will undercut an equivalent Surface 2 Pro by $500.

All MS have to do to make the Surface range successful is to hit the right price point. But alas I think they are too scared of alienating their OEM partners. To some extent the Surface has been successful in forcing the likes of Lenovo, Asus, HP to be more innovative to compete with Apple. If Surface RT were priced at $199 or even $299 it would fly.

Yeah, I've been thinking about this all day. Surface 2 at $500 or even $400 with no touch cover included makes absolutely no sense when Asus gives you a full detachable laptop with an Atom CPU which is more expensive than an ARM one, and build quality doesn't make such a big price difference.

This fear of retaliation from OEMs you mention does make quite a bit of sense. Look at the past year, Surface has been quite the disaster and even then basically all the important manufacturers have released at least one Chromebook. If MS made too good a product at a perfect price (eg, Surface 2+keyboard at $400) most OEMs would probably run away. Now, where would they run? That's anybody's guess, but that would be a mortal wound to many OEMs since who's going to buy their hardware when you can buy Microsoft made ones directly from them?

Overpricing Surface is a bad strategy for MS as far as their own sales go, but it is a good strategy to tame the market and keep OEM relations balanced. I myself am 99% decided to buy an Asus T100 since I'm now sadly convinced the Surface 2 will hover around $500, and that means there's probably millions like me who want metro stuff but also compatibility for the time being, for a few more years, until the metro stuff matures into a great marketplace. Asus delivered for all those consumers, MS will lose in the short term... but as the new environment improves, they will eventually have the advantage of keeping the same price, only it will be a better value proposition once the ecosystem is great.

That, however, assumes that such rosy future will indeed happen for the metro stuff, and that's a big IF...

Microsoft needs to learn from the Nokia Lumia Series eg. The inexpensive Nokia Lumia 520, 620 are high quality & affordable devices, they were made available in various markets within a reasonable time frame.
Honestly as a consumer, I would prefer to see that materialize.

Btw, The original line of Surface tablets are still not available in my country (India).

wrt to Windows RT & Windows Phone:-
Both of them need to be merged to make a single unified OS. once that is done,
It would be better if they put in a sim card slot for those who want to make phone calls or surf the net on the surface line of devices (btw, I'm very well aware about tethering, but normal users are not. MS needs to give that option too).

Also, pls. make the Ethernet adapter accessory, work with Surface RT devices.

Maybe they will sale the 64gb model for 499 and a 128gb for 599. Since most people with probably have a cover already and if not they are only 79 dollars anyway. But it will probably be more of the same.

Thanks for the write-up Paul, I still think these devices are too expensive and here in Australia we will be paying even more, I am interested in the surface pro but at that price point there are better options available to users. Microsoft has mishandled this badly.

$499 is DOA. They should start at $399. Another $1 Billion write-off? The Surface Pro is interesting in that perhaps they should abandon this category in favor of the Bay Trail version with a lower price point of $499 or less. Full Windows compatibility for less money.

Interesting that the Surface mini might be an ARM chip. Instead of making the 10 inch an ARM, make it the Bay Trail version.

The specs look very nice but I have my doubt about the competitiveness of the price.

Microsoft is not going to stop developing RT because they need to be ready for the unexpected. If ARM keeps grabbing marketshare, especially if it makes serious inroads to the low power server market, Microsoft needs to have a code base ready to produce an offering on the platform.

Meanwhile, have they given any thought to doing their own Bay Trail or future ATOM tablet? Let the consumer decide if x86 compatibility matters to them and get some more installed base for 8/RT devs to pursue.

I like the Surface and Windows 8 concepts so its unfortunate to be awaiting the new product launches in the expectation that lessons have not been learned, hardware and marketing. Hoping to be proved wrong.

For me, the biggest problem with the first generation, RT and Pro, was the appalling rear facing camera, precluding use of imaging apps that comprise a very useful feature of tablets. Not everyone cares about this feature but surely everyone is going to compare the new Surface with the new iPad and expect Surface pricing to reflect strengths and weaknesses.

Its not so difficult to compile a comparison chart for Surface models and their principle Apple and Android competitors (My 14 year old did exactly that). Then price accordingly. We shall learn shortly whether Excel has finally been deployed for the 2013 line-up.

Julie Larson-Green says and I quote :"I think what we learned a lot is that you need to have balance to be successful in the market," she continued. "So you need to have the combination of great hardware, great software, apps and services in order to win.

At no point does she mention that little point called price. They are the underdogs in this market. That means they must have the best hardware/software solution AND be the cheapest.

If come Monday the Surface 2 is as expensive as the previous generation, then frankly Microsoft deserve another wharehouse full of the things unsold. Any executive that still don't get it at this point, is the sought who might as well rename Windows OS2.

MSFT launched their Surface 2 site: http://www.microsoft.com/surface/en-us/pre-order It looks like the pricing is a bit cheaper (but not cheap enough IMHO), the keyboard is backlit (see video), and from the 365 degree spin there's no place for the pen.